Reliance's Future Rests on New Delhi

By

Harsh Joshi

Updated April 11, 2012 12:11 p.m. ET

Like India itself, Reliance Industries offers plenty of promise, if only it could move beyond a very sticky patch.

In the December quarter, the energy giant reported a 14% drop in net profit, the first decline in over two years, as refining margins shrank and gas output fell. Earnings could drop again in the March quarter by 25%, says brokerage Emkay.